The sales tax is accounts for 88 cents of every dollar that goes to Utah’s general fund – the money that’s most flexible in meeting the state’s changing needs. The sales tax is a key revenue source for local governments too.
The sales tax also offers an advantage to state and local governments as a means of passing on some governmental costs to visitors. Virtually every tourist who enters Utah will pay some form of sales tax, helping to cover services and infrastructure for the locals.
But it’s fair to say that among many policy analysts and economists, the sales tax is not a favorite. They usually begin by pointing out that it’s regressive. Because people with lower incomes tend to spend a greater proportion of their income on necessities — and these necessities are often subject to the sales tax — these people spend a greater proportion of their income on sales taxes.
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